Bill Text: TX SB28 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to financial assistance provided and programs administered by the Texas Water Development Board.
Spectrum: Slight Partisan Bill (Republican 36-12)
Status: (Passed) 2023-06-09 - See remarks for effective date [SB28 Detail]
Download: Texas-2023-SB28-Enrolled.html
S.B. No. 28 |
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relating to financial assistance provided and programs | ||
administered by the Texas Water Development Board. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 10.010, Water Code, is amended to read as | ||
follows: | ||
Sec. 10.010. POWERS AND DUTIES OF COUNCIL. The council | ||
shall: | ||
(1) monitor trends in water conservation | ||
implementation; | ||
(2) monitor new technologies for possible inclusion by | ||
the board as best management practices in the best management | ||
practices guide developed by the water conservation implementation | ||
task force under Chapter 109, Acts of the 78th Legislature, Regular | ||
Session, 2003; | ||
(3) monitor the effectiveness of the statewide water | ||
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16.026 [ |
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of the program; | ||
(4) develop and implement a state water management | ||
resource library; | ||
(5) develop and implement a public recognition program | ||
for water conservation; | ||
(6) monitor the implementation of water conservation | ||
strategies by water users included in regional water plans; and | ||
(7) monitor target and goal guidelines for water | ||
conservation to be considered by the board and commission. | ||
SECTION 2. Chapter 15, Water Code, is amended by adding | ||
Subchapter C-1 to read as follows: | ||
SUBCHAPTER C-1. NEW WATER SUPPLY FOR TEXAS FUND | ||
Sec. 15.151. DEFINITION. In this subchapter, "fund" means | ||
the new water supply for Texas fund. | ||
Sec. 15.152. FUND. (a) The new water supply for Texas fund | ||
is a special fund in the state treasury administered by the board. | ||
The fund consists of: | ||
(1) money appropriated for transfer or deposit to the | ||
credit of the fund; | ||
(2) money the board transfers to the fund from any | ||
available source; | ||
(3) depository interest allocable to the fund and | ||
other investment returns on money in the fund; | ||
(4) money from gifts, grants, or donations to the | ||
fund; and | ||
(5) any other fees or sources of revenue that the | ||
legislature may dedicate for deposit to the fund. | ||
(b) The fund is exempt from the application of Section | ||
403.095, Government Code. | ||
Sec. 15.153. USE OF FUND. (a) The board by rule shall | ||
undertake to finance projects through the fund that will lead to | ||
seven million acre-feet of new water supplies by December 31, 2033. | ||
(b) The fund may be used to: | ||
(1) provide financial assistance to political | ||
subdivisions to develop water supply projects that create new water | ||
sources for the state, including: | ||
(A) desalination projects, including marine and | ||
brackish water desalination; | ||
(B) produced water treatment projects, other | ||
than projects that are only for purposes of oil and gas exploration; | ||
(C) aquifer storage and recovery projects; and | ||
(D) the development of infrastructure to | ||
transport water that is made available by a project described by | ||
this subdivision; | ||
(2) make transfers from the fund: | ||
(A) to the state water implementation fund for | ||
Texas established under Subchapter G or the Texas Water Development | ||
Fund II established under Subchapter L, Chapter 17; and | ||
(B) for a purpose described by Subdivision (1); | ||
and | ||
(3) make transfers from the fund to the water bank | ||
account established under Section 15.707. | ||
(c) The fund may be used for any purpose described by | ||
Subsection (b) under criteria developed by the board. A loan made | ||
from the fund under this subchapter may provide for repayment terms | ||
of up to 30 years, in the board's discretion. | ||
(d) Financial assistance for a purpose described by | ||
Subsection (b)(1): | ||
(1) may be provided for a qualifying project under | ||
Chapter 2267, Government Code, only if the project complies with | ||
that chapter; and | ||
(2) may not be provided for expenses associated with | ||
the maintenance or operation of a water supply project described by | ||
Subsection (b)(1). | ||
Sec. 15.154. FINANCIAL ASSISTANCE. (a) The board shall | ||
adopt rules necessary to administer this subchapter, including | ||
rules establishing procedures for the application for and award of | ||
financial assistance, the distribution of financial assistance, | ||
the investment of funds, and the administration of financial | ||
assistance and the fund. | ||
(b) When evaluating an application for financial assistance | ||
from a political subdivision, the board shall consider: | ||
(1) the intended end users of the water supply, the | ||
needs of the area to be served by the project, the expected benefit | ||
of the project to the area, the relationship of the project to the | ||
water supply needs of this state overall, and the relationship of | ||
the project to the state water plan; | ||
(2) the amount of water expected to be produced by the | ||
project; and | ||
(3) the availability of money or revenue to the | ||
political subdivision from all sources for the ultimate repayment | ||
of the cost of the project, including all interest. | ||
(c) The board by resolution may approve an application if, | ||
after considering the factors listed in Subsection (b) and other | ||
relevant factors, the board finds that: | ||
(1) the public interest is served by state assistance | ||
for the project; and | ||
(2) for an application for financial assistance in the | ||
form of a loan, the money or revenue pledged by the political | ||
subdivision will be sufficient to meet all the obligations assumed | ||
by the political subdivision during the term of the loan. | ||
(d) The repayment of principal or interest on a loan made | ||
under this subchapter must be deposited to the credit of the Texas | ||
water fund. This subsection does not apply to a loan made under | ||
other law with money transferred under Section 15.153(b)(2). | ||
(e) An application from a political subdivision for | ||
financial assistance under this subchapter must comply with the | ||
requirements of Section 16.4021. | ||
(f) Sections 17.183-17.187 apply to the construction of | ||
projects funded under this subchapter. | ||
SECTION 3. Section 15.438(a), Water Code, is amended to | ||
read as follows: | ||
(a) The State Water Implementation Fund for Texas Advisory | ||
Committee is composed of the following seven members: | ||
(1) the comptroller, or a person designated by the | ||
comptroller; | ||
(2) three members of the senate appointed by the | ||
lieutenant governor, including: | ||
(A) a member of the committee of the senate | ||
having primary jurisdiction over matters relating to finance; and | ||
(B) the chair [ |
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senate having primary jurisdiction over water [ |
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and | ||
(3) three members of the house of representatives | ||
appointed by the speaker of the house of representatives, | ||
including: | ||
(A) a member of the committee of the house of | ||
representatives having primary jurisdiction over appropriations; | ||
and | ||
(B) the chair [ |
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house of representatives having primary jurisdiction over water | ||
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SECTION 4. Section 15.472(a), Water Code, is amended to | ||
read as follows: | ||
(a) The state water implementation revenue fund for Texas is | ||
a special fund in the state treasury outside the general revenue | ||
fund to be used by the board, without further legislative | ||
appropriation, only for the purpose of providing financing for | ||
projects included in the state water plan that are authorized under | ||
Subchapter C-1, Q, or R of this chapter, Subchapter E or F, Chapter | ||
16, or Subchapter J or L, Chapter 17. The board may establish | ||
separate accounts in the fund. The board has legal title to money | ||
and investments in the fund until the money is disbursed as provided | ||
by this subchapter and board rules. It is the intent of the | ||
legislature that the fund will never be used: | ||
(1) for a purpose other than the support of projects in | ||
the state water plan; or | ||
(2) to certify that appropriations from the treasury | ||
are within the amount estimated to be available in a fund of the | ||
treasury affected by the appropriation. | ||
SECTION 5. Section 15.474(a), Water Code, is amended to | ||
read as follows: | ||
(a) Except as provided by Subsection (c), money in the fund | ||
may be used by the board only to provide financing or refinancing, | ||
under terms specified by the board, for projects included in the | ||
state water plan that are authorized under Subchapter C-1, Q, or R | ||
of this chapter, Subchapter E or F, Chapter 16, or Subchapter J or | ||
L, Chapter 17, including water conservation or reuse projects | ||
designed to reduce the need for this state or political | ||
subdivisions of this state to develop additional water resources. | ||
SECTION 6. Chapter 15, Water Code, is amended by adding | ||
Subchapter H-1 to read as follows: | ||
SUBCHAPTER H-1. TEXAS WATER FUND | ||
Sec. 15.501. DEFINITION. In this subchapter, "fund" means | ||
the Texas water fund. | ||
Sec. 15.502. FUND. (a) The Texas water fund is a special | ||
fund in the state treasury outside the general revenue fund. The | ||
fund is administered by the board. | ||
(b) The board may use the fund only to transfer money to: | ||
(1) the water assistance fund established under | ||
Subchapter B; | ||
(2) the new water supply for Texas fund established | ||
under Subchapter C-1; | ||
(3) the state water implementation fund for Texas | ||
established under Subchapter G; | ||
(4) the state water implementation revenue fund for | ||
Texas established under Subchapter H; | ||
(5) a revolving fund established under Subchapter J; | ||
(6) the rural water assistance fund established under | ||
Subchapter R; | ||
(7) the statewide water public awareness account | ||
established under Section 16.027; | ||
(8) the Texas Water Development Fund II water | ||
financial assistance account established under Section 17.959; and | ||
(9) the Texas Water Development Fund II state | ||
participation account established under Section 17.957. | ||
(c) Money and investments in the fund shall be kept and held | ||
for and in the name of the board. | ||
(d) Money in the fund may be used only as provided by this | ||
subchapter. | ||
(e) The fund consists of: | ||
(1) money transferred or deposited to the credit of | ||
the fund by law, including money appropriated by the legislature | ||
directly to the fund and money from any source transferred or | ||
deposited to the credit of the fund as authorized by law; | ||
(2) any other revenue that the legislature by statute | ||
dedicates for deposit to the credit of the fund; | ||
(3) investment earnings and interest earned on amounts | ||
credited to the fund; | ||
(4) money from gifts, grants, or donations to the | ||
fund; and | ||
(5) money returned from any authorized transfer. | ||
Sec. 15.503. MANAGEMENT AND INVESTMENT OF FUND. (a) Money | ||
in the fund shall be held and invested by the Texas Treasury | ||
Safekeeping Trust Company, taking into account the purposes for | ||
which money in the fund may be used. | ||
(b) The fund and any accounts established in the fund shall | ||
be kept and maintained by or at the direction of the board. | ||
(c) In managing the assets of the fund, the trust company | ||
may acquire, exchange, sell, supervise, manage, or retain any kind | ||
of investment that a prudent investor, exercising reasonable care, | ||
skill, and caution, would acquire or retain in light of the | ||
purposes, terms, distribution requirements, and other | ||
circumstances of the fund then prevailing, taking into | ||
consideration the investment of all the assets of the fund rather | ||
than a single investment. The reasonable expenses of managing the | ||
fund's assets shall be paid from the fund. | ||
(d) Section 404.094(d), Government Code, applies to the | ||
fund. | ||
Sec. 15.504. USE OF FUND. (a) The board by resolution may | ||
make transfers from the fund to a fund or account described by | ||
Section 15.502(b) for an authorized purpose of the receiving fund | ||
or account. | ||
(b) The board may not transfer money to a fund or account | ||
described by Section 15.502(b) until the application for the | ||
project for which the money is to be used has been approved. | ||
(c) The board shall ensure that a portion of the money | ||
transferred from the fund is used for: | ||
(1) water infrastructure projects, prioritized by | ||
risk or need, for: | ||
(A) rural political subdivisions; and | ||
(B) municipalities with a population of less than | ||
150,000; | ||
(2) projects for which all required state or federal | ||
permitting has been substantially completed, as determined by the | ||
board; | ||
(3) the statewide water public awareness program | ||
established under Section 16.026; | ||
(4) water conservation strategies; and | ||
(5) water loss mitigation projects. | ||
(d) Money transferred from the fund for the purposes | ||
described by Subsection (c) may be transferred to funds or accounts | ||
described by Section 15.502(b) to be used to provide financial | ||
assistance for any purpose described by Subsection (c) under | ||
criteria developed by the board and in accordance with law. | ||
(e) Money deposited to the credit of the fund as provided by | ||
Section 15.154(d) may be used only for the purposes described by | ||
Section 15.153(b). | ||
(f) The board may use the fund to pay the necessary and | ||
reasonable expenses of the board in administering the fund not to | ||
exceed two percent. | ||
Sec. 15.505. TRANSFER OF MONEY. Notwithstanding any other | ||
law: | ||
(1) the board may: | ||
(A) transfer money from the fund into any other | ||
fund or account described by Section 15.502(b); and | ||
(B) restore to the fund money transferred from | ||
the fund and deposited to the credit of a fund or account described | ||
by Section 15.502(b); and | ||
(2) a fund or account described by Section 15.502(b) | ||
may accept a transfer of money made under this subchapter. | ||
Sec. 15.506. ADVISORY COMMITTEE. (a) The State Water | ||
Implementation Fund for Texas Advisory Committee established under | ||
Section 15.438: | ||
(1) shall submit comments and recommendations to the | ||
board regarding the use of money in the fund for use by the board in | ||
adopting rules under Section 15.507; | ||
(2) shall review the overall operation, function, and | ||
structure of the fund at least annually and may provide comments and | ||
recommendations to the board on any matter; and | ||
(3) may adopt rules, procedures, and policies as | ||
needed to administer this section and implement its | ||
responsibilities. | ||
(b) The advisory committee may not recommend specific | ||
projects for consideration for receipt of financial assistance from | ||
the fund. | ||
Sec. 15.507. RULES. (a) The board may adopt rules | ||
providing for the use of money in the fund that are consistent with | ||
this subchapter. | ||
(b) Rules adopted under this section must require each | ||
recipient of financial assistance administered through the fund to | ||
submit to the board a water conservation plan consistent with the | ||
requirements of Section 16.4021. | ||
SECTION 7. Section 15.994(c), Water Code, is amended to | ||
read as follows: | ||
(c) The board may use money in the fund to contract for | ||
outreach, financial, planning, and technical assistance to assist | ||
rural political subdivisions [ |
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obtaining and using financing from funds and accounts administered | ||
by the board. | ||
SECTION 8. Section 16.0121, Water Code, is amended by | ||
adding Subsections (k) and (l) to read as follows: | ||
(k) The board by rule shall establish a program to provide | ||
technical assistance to retail public utilities in conducting water | ||
audits required under Subsections (b) and (b-1) and in applying for | ||
financial assistance from the board to mitigate the utility | ||
system's water loss. The board may provide for the implementation | ||
of the program established under this subsection by contracting or | ||
partnering with other entities. Rules adopted under this section | ||
must provide for the prioritization of technical assistance to | ||
retail public utilities based on: | ||
(1) water loss audits submitted to the board; | ||
(2) the population served by the utility; and | ||
(3) the integrity of the utility's system. | ||
(l) The board shall post on the board's Internet website | ||
information that: | ||
(1) summarizes the information compiled under | ||
Subsection (f); | ||
(2) summarizes the measures taken by retail public | ||
utilities to reduce water loss; and | ||
(3) identifies the retail public utilities | ||
participating in the program established under Subsection (k) and | ||
details the use of financial assistance provided under that | ||
subsection. | ||
SECTION 9. Section 16.401, Water Code, is transferred to | ||
Subchapter B, Chapter 16, Water Code, redesignated as Section | ||
16.026, Water Code, and amended to read as follows: | ||
Sec. 16.026 [ |
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PUBLIC AWARENESS PROGRAM. (a) The executive administrator shall | ||
develop and implement a statewide water [ |
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awareness program to educate residents of this state about water | ||
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differences in water [ |
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regions of the state and shall be designed to complement and support | ||
existing local and regional water education or awareness | ||
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(b) The executive administrator is required to develop and | ||
implement the program required by Subsection (a) in a state fiscal | ||
biennium only if the legislature appropriates sufficient money in | ||
that biennium specifically for that purpose. | ||
SECTION 10. Subchapter B, Chapter 16, Water Code, is | ||
amended by adding Section 16.027 to read as follows: | ||
Sec. 16.027. STATEWIDE WATER PUBLIC AWARENESS ACCOUNT. (a) | ||
The statewide water public awareness account is an account in the | ||
general revenue fund. The account consists of: | ||
(1) money appropriated to the board for deposit to the | ||
credit of the account; | ||
(2) money transferred by the board to the credit of the | ||
account from other funds available to the board; | ||
(3) money from gifts or grants to the account from any | ||
source, including the federal government, an educational | ||
institution, or a private donor; | ||
(4) proceeds from the sale of educational or public | ||
awareness materials, publications, and other items deposited to the | ||
credit of the account; and | ||
(5) interest earned on the investment of money in the | ||
account and depository interest allocable to the account. | ||
(b) The account may be used by the board to develop, | ||
administer, and implement the statewide water public awareness | ||
program established by Section 16.026. | ||
(c) The account is exempt from the application of Section | ||
403.095, Government Code. | ||
SECTION 11. Section 16.4021(b), Water Code, is amended to | ||
read as follows: | ||
(b) This section applies to an application for financial | ||
assistance under: | ||
(1) Subchapters C, C-1, D, E, G, H, J, O, Q, and R, | ||
Chapter 15; | ||
(2) Subchapters E and F of this chapter; and | ||
(3) Subchapters D, F, I, K, and L, Chapter 17. | ||
SECTION 12. Not later than January 1, 2024, the Texas Water | ||
Development Board shall adopt rules as required by Section | ||
16.0121(k), Water Code, as added by this Act. | ||
SECTION 13. (a) Except as otherwise provided by this Act, | ||
this Act takes effect September 1, 2023. | ||
(b) Section 6 of this Act takes effect January 1, 2024, but | ||
only if the constitutional amendment proposed by the 88th | ||
Legislature, Regular Session, 2023, creating the Texas water fund | ||
to assist in financing water projects in this state is approved by | ||
the voters. If that constitutional amendment is not approved by | ||
the voters, Section 6 of this Act has no effect. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 28 passed the Senate on | ||
April 3, 2023, by the following vote: Yeas 31, Nays 0; | ||
May 22, 2023, Senate refused to concur in House amendments and | ||
requested appointment of Conference Committee; May 23, 2023, House | ||
granted request of the Senate; May 28, 2023, Senate adopted | ||
Conference Committee Report by the following vote: Yeas 31, | ||
Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 28 passed the House, with | ||
amendments, on May 17, 2023, by the following vote: Yeas 136, | ||
Nays 8, one present not voting; May 23, 2023, House granted request | ||
of the Senate for appointment of Conference Committee; | ||
May 28, 2023, House adopted Conference Committee Report by the | ||
following vote: Yeas 134, Nays 4, two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |